Question

Financial Statement Presentation and Stock Transactions------------- Homework worth 20 points must be turned in at start of class.

Transaction	Balance Sheet Equity Section-After Each Transaction
Issued 50,000 shares of common stock with par of $10 when market price is $45.00. Issued 20,000 of cumulative 5% preferred stock with par of $5 for market price of $10. This is the first issuance of stock by the company. All preferred stock is non-participating and is handled as we have handled preferred stock in the exercises in class. 6 points	Contributed Capital: Common stock, ________shares issued and _____________________shares outstanding, $___par                                                              $ Paid in capital, Common stock (Insert cumulative or noncumulative, participating or non-participating) Preferred stock, ________________shares issued and _______________shares outstanding, $_______par                                                                                                                                                                   $ Paid in capital, Preferred stock Total Contributed Capital Retained Earnings                                                                                                                                                                                                                                                            $ Dividends Distributable                                                                                                                                                                                                                                                 $ Accumulated Comprehensive Income Less:                                      Treasury Stock                                                                                                                                                                                                                                                                  $ Total Equity	$
Company had net income of $5 million in this, the first year of operations. OCI items totaled $700,000 credit balance 1 point.
Bought back stock paying $40.00 per share for 2,000 shares 2 points
Sold 2,000 shares of treasury stock to the public at a price of $60.00 per share 4 points
Issued stock dividends of 5%. Assume these dividends are to common shareholders only and are both declared and issued. The last traded price of the stock is $55.00 3 points
2 for 1 Stock split declared and given to the holders on the record date. Not a stock dividend but stock split! 1 point

Answer 1

Balance Sheet Equity Section
Common Stock	$525,000
Preferred Stock	100000
Paid-in capital in excess of par value - Common	$1,862,500
Paid-in capital in excess of par value - Preferred Stock	$100,000
Paid-in capital in excess of par value - Treasury Stock	$40,000
Total Contributed Capital	$2,627,500
Retained earnings	$4,790,000
Accumulated Comprehensive Income	$700,000
Less: Treasury Share
Total Stock Holder Equity	$8,117,500

Statement of Equity Shareholder Equity-Worksheet
Transation	Common Stock	+	Preferred Stock	+	Paid In capital in Excess of Par - Common	+	Paid in Capital in Excess of Par- Preferred stock	+	Paid in Capital in Excess of Par- Treasury Stock	+	Retained Earning	-	Treasury Stock
1	$500,000		$100,000		$1,750,000		$100,000
2											$5,000,000
3													$80,000
4									$40,000				-$80,000
5*	$25,000				$112,500
6
7											-$210,000
Total	$525,000		$100,000		$1,862,500		$100,000		$40,000		$4,790,000		$0

Working for refrence